The Grand Duchy remains one of the very few countries awarded the top credit rating by the three main agencies - S&P, Fitch and Moody's - and the DBRS.
The Grand Duchy's economy is growing faster than the average for the euro area, and faster than many other countries with a triple-A rating. Growth is expected to be about 4% for the next two years. In this context, the financial centre - noted by the agency for its good governance and diversification - is a driving force. Moody's also highlights the positive contribution of the Systemic Risk Committee to maintaining stability in the financial sector.
The Grand Duchy's budget situation seems to be one of the most solid among the countries with a triple-A rating. The study notes in particular the improvement in the situation of public finance over the past three years, and forecasts a positive evolution in the balance of public administration, expected to increase from 0.2% of GDP in 2017 to 0.7% in 2020. The level of indebtedness is expected to be about 23% in 2017.
Minister of Finance Pierre Gramegna said, "This confirmation of its triple-A rating is good news for the Grand Duchy, as it reinforces its economic attractiveness, thereby contributing to the creation of new jobs. Moody's analysis shows that maintaining a triple-A rating with stable prospects is not obvious, but the result of well-founded political choices. The Grand Duchy's public finances are solid, and enable us to look to the future with confidence."
(Source: press release from the Ministry of Finance)